Ford's Mulally makes $29.5 million in 2011, up 11%
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Ford CEO Alan Mulally is credited with being a major component of Motor Company’s success over the past six years but eyebrows were raised when Mulally made $26.5 million in 2010. With the news that the Ford Chief received what was effectively an 11% raise for 2011 with a total income of $29.5 million, we can expect that there will be more rabble-rousers who are going to find fault with Mulally’s pay for the year. After UAW President Bob King referred to Mulally’s pay last year as morally wrong, perhaps the labor boss will have something to say this year about the Ford CEO’s 11% pay increase to nearly $30 million.
Alan Mulally’s pay for 2011 was comprised of $2 million in cash salary, $5.46 million in cash bonuses and an additional $22 million in stock based rewards. This total figure of $29.5 million makes Mulally the best paid CEO in the auto industry for the second year in a row with the Volkswagen Group’s Martin Winterkorn coming in second with $23.3 million and Fiat’s Sergio Marchionne ranks third with $19 million in income for 2011. It should be noted that in making that much money for 2011, Sergio Marchionne did not receive any payment for his position atop the Chrysler Group so if the Sergio were to begin taking a salary from Chrysler; he could challenge Mulally for the title of being the top paid auto CEO.
Ford was massively successful by the standards of the average Joe, with operating profit of $8.8 million and total net income of $7.8 billion. Yeah, that’s BILLION. Even though Ford fell short of a variety of market share and quality goals but the pay of the executives is not determined based on whether or not the company goals are met. However, as what seems to be a faint attempt at a punishment, Mulally’s cash bonus was cut by 42% compared to 2010 but with the hefty stock bonuses that cash bonus cut is hardly noticeable.
This information was revealed in Ford’s annual proxy statement which was released today with an outline of the payroll expenses for the company’s five top paid execs. Executive Chairman Bill Ford was second with $14.5 million reached with a $2 million salary, $1.56 million cash bonuses and $10.9 million in stock bonuses. Those who like to gripe about the pay of executives can sleep a little better knowing that Bill Ford saw a 45% pay cut compared to the year before.
President of the Americas Mark Fields was third in 2011 income among executives in making with $8.8 million while Chief Financial Officer Lewis Booth was fourth with $7.7 million and Vice President Asia Pacific and Africa Joseph Hinrichs rounded at the top five with $5.3 million earned in 2011.
Source: Automotive News